Crypto related scams have been on the rise in the past few months. Authorities and governments have also been taking swift action against these exploits. In a recent such action, a UK court sentenced two fraudsters who masterminded a cryptocurrency scam and deceived dozens of unsuspecting investors to a combined 12 years in prison.
The United Kingdom’s Financial Conduct Authority said that a Southwark Crown Court in London, ruled against Raymondip Bedi and Patrick Mavanga after the pair pleaded guilty to a cryptocurrency scam that resulted in 65 victims losing over 1.5 million British pounds ($2 million) between 2017 and 2019.
According to reports, the scheme used cold-calling tactics where Bedi, 36, and Mavanga, 39, posed as legitimate crypto investment consultants, using slick websites and fake credentials to convince victims they were investing in genuine digital assets. In reality, the promises of high returns were nothing more than a front for a carefully orchestrated fraud.
Judge Griffiths, presiding over the sentencing, told the men they had “conspired to drive a coach and horses through the regulatory system,” describing their actions as a deliberate and calculated attack on investor trust.
Bedi was sentenced to five years and four months in prison, while Mavanga received a sentence of six years and six months. The FCA noted that Mavanga was also convicted of perverting the course of justice after he deleted phone call recordings following Bedi’s arrest in March 2019. He was additionally found in possession of fake identification documents.
FCA’s executive director of enforcement Steve Smart said, “These men ruthlessly defrauded dozens of innocent victims. It is right that they have received these prison sentences.”
The men were first charged in April 2023 and pleaded guilty in November to a range of offenses, including conspiracy to defraud, money laundering, and breaches of UK financial laws.
Additionally, one unnamed defendant related to the case, is expected to face retrial in September after a jury failed to reach a verdict, while Rowena Bedi, charged with a single count of money laundering was acquitted.
The FCA has warned investors to remain vigilant and be cautious of unsolicited investment opportunities, especially those involving cryptocurrency.
